Mel Company uses the periodic inventory method and had the following inventory information available:Units Unit Cost Total CostBeginninginventory1/20 Purchase1/1100$4$400400$5$2,0007/25 Purchase200$7$1,400$2,40010/20Purchase300$8Total1,000$6,200A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The dollaramount assigned to Ending Inventory is

Name: Mel Company uses the periodic inventory method and had the following
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Description: Mel Company uses the periodic inventory method and had the following inventory information available:Units Unit Cost Total CostBeginninginventory1/20 Purchase1/1100$4$400400$5$2,0007/25 Purchase200$7$1,400$2,40010/20Purchase300$8Total1,000$6,200A ph

Using average cost method, the cost per unit is calculated as total cost of goods available for sale…

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Mel Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost Beginning inventory 1/20 Purchase 1/1 100 $4 $400 400 $5 $2,000 7/25 Purchase 10/20Purchase 200 $7 $1,400 300 $8 $2.400 Total 1,000 $6,200 A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The da amount assigned to Ending Inventory is

Mel Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost Beginning inventory 1/20 Purchase 1/1 100 $4 $400 400 $5 $2,000 7/25 Purchase 10/20Purchase 200 $7 $1,400 300 $8 $2.400 Total 1,000 $6,200 A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The da amount assigned to Ending Inventory is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Heiner Company began business on July 1, 2022 and made the following four inventory purchases in July: Units Unit Total Purchased Cost Cost July 1 150 units $5.20 $ 780July 10 200 units $5.85 1,170July 15 200 units $6.30 1,260July 28 150 units $6.60 990 $4,200 A physical count of inventory on July 31 reveals that there are 200 units on hand. Using the LIFO inventory method, calculate the Cost of Goods Sold for July. (Include two decimal places in your answer; do not include a $ sign)
Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 150 units @ $5 = $750 9 Purchase 1 200 units @ $12 = $2,400 14 Sale 1 300 units @ $25 22 Purchase 2 250 units @ $14 = $3,500 29 Sale 2 225 units @ $25 Assume that Filimonov uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of goods sold Cost of ending inventory
Fisher Corporation uses the perpetual FIFO inventory method and has the following information regarding its inventory: Date Inventory Events Amount June 1 Beginning balance 60 units at $6 $360 June 3 Purchased 510 units at $10.00 5,100 June 25 Purchased 370 units at $12.00 4,440 If the company sold 350 units of inventory for $12 each what would be the effect of the sale? Record the effect on the following accounts: Assets Liabilities Stockholders' Equity Revenues and Expenses (Income Statement) Net Income Cash - Decrease $4200; Inventory - Decrease $3500 Cash - Decrease $4200; Inventory - Increase $4200 Cash - Decrease $4200; Inventory - No Change Cash - Increase $4200; Inventory - Decrease $3260 Cash - Increase $4200; Inventory - Increase $3500 Cash - Increase $4200; Inventory - No Change Cash - No Change; Inventory - Decrease $3260 Cash - No Change; Inventory - Increase $3260 Cash - No Change; Inventory - No Change
The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item: Unit Cost Units 4,800 $7.80 9,600 8.10 6,700 8,600 8.40 14,400 16,400 8.56 14,400 9,600 8.70 1. 2. 3. 4. 5. 6. 7. Sale (at $19.80) 8. Purchase Inventory Purchase Sale (at $16.80) Purchase Sale (at $16.80) Purchase Required: Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.) Independent Assumptions a. FIFO b. Weighted average, periodic inventory system c. Moving average, perpetual inventory system Ending Inventory Units and Amounts Cost of Goods Sold Gross Margin
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Mel Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost $4 $400 $5 $2,000 $7 $1,400 $8 $2,400 1/1 Beginning inventory 1/20 Purchase 7/25 Purchase 10/2 Purchase 0 Total 100 400 200 300 1,000 $6,200 A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The dollar amount assigned to Ending Inventory is O $1,860. $2,480. $1,800. $4,340.
Niles Co. has the following data related to an item of inventory: Inventory, March 1 400 units @ $2.10 Purchase, March 7 1,400 units @ $2.20 Purchase, March 16 280 units @ $2.25 March 31 520 units The value assigned to cost of goods sold if Niles uses FIFO is: A) $3,448. B) $3,392. C) $1,160. D) $1,104. 2. Emley Company has been using the LIFO method of inventory valuation for 10 years since it began operations. Its 2020 ending inventory was $60,000, but it would have been $90,000 if FIFO had been used. Thus, if FIFO had been used, Emley’s income before income taxes would have been: A) $30,000 less in 2020. B) $30,000 greater in 2020. C) $30,000 greater over the 10-year period. 3. Nichols Company had 500 units of “SIO” in its inventory at a cost of $5 each. It purchased, for $2,400, more units of “SIO”. Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow assumption used by Nichols: A) is FIFO. B) is weighted average. C) is…
Luna Corporation was established in 2021. The company authorized 15,000 shares of Preferred Stock; the par value is $100.00 per share and 5% cumulative stock. Common stock was authorized at 100,000 shares with a par value of $5.00 per share. Prepare the following transactions in the proper journal entry form. Calculate the number of outstanding shares of Common Stock Luna Company has as of June 30.
The inventory accounting records for Lee Enterprises contained the following data: Beginning inventory 400 units at $13 each Purchase 1, Feb. 26 2,300 units at $14 each Sale 1, March 9 2,500 units at $27 each Purchase 2, June 14 2,200 units at $15 each Sale 2, Sept. 22 2,100 units at $29 each Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) FIFO LIFO Average cost Cost of ending inventory Cost of goods sold